TaxTMI 
TaxTMI 
Whether Cenvat credit can be claimed on Service Tax paid on rent towards Guest House maintained by the Company in different Cities?
Cenvat credit of Service Tax
15 Mar 2017 
5 Replies 
1741 Views Asked by
Guest 
Cenvat credit eligibility for service tax on guest house rent is doubtful due to lack of nexus with output.
Cenvat credit on service tax for rent of company guest houses is not claimable because the rent is not used in or in relation to manufacture of excisable goods or provision of output services, so the requisite input-output nexus is absent; prior availability has become doubtful after statutory scope changes, and taxpayers with substantial exposure are advised to seek an advance ruling or submit a representation to tax authorities. (AI Summary)
Cenvat credit on service tax for rent of company guest houses is not claimable because the rent is not used in or in relation to manufacture of excisable goods or provision of output services, so the requisite input-output nexus is absent; prior availability has become doubtful after statutory scope changes, and taxpayers with substantial exposure are advised to seek an advance ruling or submit a representation to tax authorities. (AI Summary)